State to pursue elusive EPAs deal as KHRC goes to court
The Standard, Kenya
State to pursue elusive EPAs deal as KHRC goes to court
1 December 2010
By Luke Anami and John Njiraini
Kenya must pursue negotiations on the Economic Partnership Agreements (EPAs) with the European Union to their favourable conclusion because there is no better alternative.
A top Ministry of Trade official, Mr Simon Chacha, said the push by the civil society for the country to discard EPAs — and adopt the Generalised System of Preferences Plus (GSP Plus) as the agreement defining trade with the EU — would be disastrous for Kenya and the East Africa Community in general.
"We need to know that the EU market will never be free to us. Demanding we forget about EPAs and go for GSP Plus is like going from the known to the unknown because while GSP Plus gives you free market access, it is not contractual and is open to amendments," he said.
He pointed out that EPAs provide a contractual set up that secures trade preferences on a long-term basis.
Chacha was speaking during the release of a report by the Kenya Human Rights Commission (KHRC) on EPAs, which concluded that trade agreements as currently drafted would entrench poverty.
The report dubbed ‘Trading our lives with Europe’, says EAC member states should halt negotiations on the EPAs. unless the agreements are tied to the development of the region.
"The EAC partner states need to press for EPAs geared at making a right to development a reality," states the report.
Kill rural economy
KHRC, which has filed a court case against the trade agreements, has been spearheading a civil society campaign opposing the EPAs on the basis that they kill the rural economy centred on agriculture, cause food insecurity, kill the region’s fragile industries, and cause lose of revenue for governments.
But even as KHRC released its findings, EAC member states signalled their readiness to resume negotiations, and promised to conclude them within the next 12 months.
During a meeting in Arusha, Tanzania yesterday, the EAC Sectoral Council of Ministers on Trade, Industry, Finance and Investment (SCTIFI) adopted a draft joint EAC-EC-EPA roadmap for the negotiations that could unlock the impasse that has persisted since 2004.
"A timeframe has been agreed to negotiate the full EPAs framework within the next one year," said EAC permanent secretary David Nalo.
He added the EAC had mobilised Sh243 million from the Swedish International Development Agency (SIDA) to facilitate the Comprehensive EPA negotiations for the period ending June 2012.
According to Chacha, the EAC negotiating team has taken into consideration all the fears raised by those opposed to the EPAs and come up with mitigation factors.
Protect food
For instance, they will protect the country’s food security by excluding sensitive agricultural products from liberalisation.
This, therefore, means imports of agricultural products from the EU will continue to be subjected to duty to safeguard the local sector.
On the issue of loss of revenue, the Government estimates that Kenya could lose Sh6 billion annually by opening her market to EU products. However, the country estimates it will earn Sh33 billion annually as a result of trade creation and new business opportunities that will arise from opening up of markets.
The EU market is the second largest trading export destination for Kenyan goods after the Comesa trading bloc.
